The impact of SBDC consulting activities.

(Journal Article) Chrisman, James J.; Nelson, R. Ryan; Hoy, Frank; Robinson, Richard B., Jr. The impact of SBDC consulting activities. Journal of Small Business Management. 1985. v. 23, no. 3, p. 1-11.

Blackwell Publishing Ltd.

Abstract: The Small Business Development Center (SBDC) program was begun in 1977 by the U.S. Small Business Administration. The SBDC was initiated to fill an unmet need for consulting for small businesses. The results of two empirical studies designed to test the effectiveness of the SBCD programs in Georgia and South Carolina are reported herein.. The studies measured the contribution to tax revenues in these two states that resulted from the improvements in the performance of small businesses served by the SBDCs.

Studies conducted in 1982 were based on 84 Georgia and 19 South Carolina businesses that had used the counseling services between October 1980 and Juy 1981, allowing comparison of performance before and after counseling. Data on gross sales, number of employees, and net income were gathered. Data were analyzed to calculated the average and incremental value added to Georgia and South Carolina state tax revenues (personal state income tax, taxable business income, and business income tax), as well as federal tax revenue.

For Georgia, the tax-generating value of the assistance to the sample firms was $1.2 million, an excess over the $1 million dollar cost to run the program. For South Carolina, the tax revenues for the sample firms represent almost 70 percent of the cost of the program.

Results offer evidence that the SBDC public sector program has been administered in a cost-effective manner in excess of the operating costs for the program; in addition, many small businesses experienced improved economic performance. (TNM)

Geography: Georgia; South Carolina; USA

Methodology: Evaluation; Experimental/primary research

Subject headings: Economic impact; Business assistance programs; Business counseling; Tax revenues; U.S. Small Business Administration (SBA); Small Business Development Centers (SBDCs)

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Funded in part through a cooperative agreement with the U.S. Small Business Administration and the University of California, Merced. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. The Central California Small Business Development Center is funded in part through a subcontract between the California State University, the Office of Economic Development and the University of California, Merced under the current cooperative agreement with the U.S. Small Business Administration.

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